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Daily wrap up: Gold continues to shine, awaiting US inflation data

9 Nov 2021 05:34 PM

Gold prices jumped during today's trading, reaching its highest level in more than two months, around the levels of $1,830 an ounce, following the data of the Producer Price Index in the United States, which rose strongly in October, driven by the rise in the costs of gasoline and retail cars, in a sign that high inflation may continue. For a while under the epidemic-related supply chain problems.

The producer price index rose by 0.6% in October compared to September, when it rose by 0.5%, and on an annual basis, producer prices rose in October by 8.6%. Tomorrow, the markets are awaiting the data of the consumer price index, and it is expected to rise by 5.8% on an annual basis during the month of October, after it jumped during the month of September by 5.4%, which is the highest in 13 years.

The major indices in Wall Street were somewhat mixed after PPI data, at a time when the shares of General Electric Company rose in light of its plan to divide its company into 3 public companies. The Dow Jones index retreated from its record highs slightly, to trade around the 36,300 points.

Jerome Powell, Chairman of the Federal Reserve, had indicated in his statements today that the Fed is looking at a wide range of indicators to measure how close the economy is to reaching full employment levels, and it is worth noting that the Fed will begin in the middle of this month to reduce the first batch of its stimulus program, which It started in March of last year to protect the economy from the impact of the Corona pandemic.

On the other hand, an opinion poll showed that investor sentiment in Germany unexpectedly rose in November amid expectations that price pressures will ease at the beginning of next year and that the eurozone economy will recover, as the ZEW Institute for Economic Research index rose to 31.7 points from 22.3 points in October, compared to Expectations indicated a decrease of 20.0 points. A monetary policy official at the European Central Bank had indicated that inflation is likely to fall below 2% by the end of next year, but the ECB should prepare for all scenarios.

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